India has relieved excise duty on locally manufactured goods sold at duty free stores at international airports in a bid to boost exports from the nation.

With this move the government has put India in line with overseas countries that exempt locally produced goods from excise duty.

The finance ministry, in its statement, said that the government has issued orders allowing excise duty-free sales of indigenously produced goods to foreign travelers or crew arriving from abroad at the duty-free stores (DFS) at arrival hall of international airports.

"Directions have also been issued to specify the procedure for removal of the goods from the factory of production without payment of duty to godowns (warehouses) or retail outlets of DFSs and related matters," the ministry added.

"Now, a passenger arriving from abroad shall have the choice to buy either duty-free imported goods or duty-free indigenous goods within his overall permissible baggage allowance."

With the latest development, Indian goods will now cost 7-9% less than before.